Certificate in Treasury and Cash Management

Why Attend

It is essential for every organization to effectively utilize its funds and manage its exposure to key risks arising from fluctuations in interest rates and foreign exchange rates. The certificate in treasury and cash management course examines the important roles of corporate treasury in managing cash flow and liquidity, working capital, accessing debt financing and managing capital. This course provides professionals with a sound understanding of tools and techniques required for effectively managing the various aspects of treasury risk.

Course Methodology

The course uses a mix of interactive techniques, such as brief presentations by the consultant, application of theories presented by the consultant and group exercises to exchange experience and apply knowledge acquired throughout the course.

Course Objectives

By the end of the course, participants will be able to:

• Describe and explain the roles of corporate treasury management and the treasury function
• Apply up-to-date practices covering asset liability management and cash management techniques
• Develop a practical understanding of financial markets and their products
• Recognize and correctly measure financial instruments under International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP)
• Describe fair value measurement and explain its effect on financial instruments’ presentation
• Explain hedging and speculation, and distinguish between the different hedging techniques applied by the treasury function

Target Audience

Treasury professionals, financial professionals, finance managers, corporate controllers, financial controllers, chief accountants, accounting managers, senior accountants, banking professionals, back-office managers, traders and dealers, finance regulators and corporate business professionals.

Target Competencies

• Treasury management
• Cash management
• Risk analysis
• Risk management
• Equity valuation
• Fixed income valuation
• Hedging
• Accounting for financial instruments

Course Outline

• Introduction to the treasury function
  • Definition and responsibilities of the treasury function
  • Treasury function as part of Organizational Structure
  • Treasury professionals’ role
  • Strategic challenges for treasurers in organizations
  • Risks surrounding the treasury function:
    • Market risks: interest rate risk, FX risk, equity price risk, commodity price risk
    • Liquidity risk
    • Credit risk
    • Other risks
  • Cash and liquidity management
    • Asset and liability management versus treasury management
    • Understanding the cash cycle
    • Reasons for holding cash: transaction, precautionary and speculative
    • The optimum cash balance:
      • Baumol’s model
      • Miller-Orr model
    • Managing and accelerating collections
    • Managing and decelerating disbursements
    • Ratio analysis for decision making
      • Days sales outstanding versus credit term
      • Days inventory on hand versus lead time
      • Days of payables
      • Cash conversion cycle
    • Corporate finance theory
      • The time value of money
      • Steps in the investment management process
      • Calculating holding period return
      • Risk and return concepts
        • Calculating mean of returns
        • Variance and standard deviation as a measure of risk
        • Covariance and correlation of returns for two securities
        • Interpreting correlation of returns
      • Fixed income securities and bonds’ valuations
        • The money market and instruments
        • The debt market
          • Bonds and Sukuk
        • Risks associated with the debt market
          • Credit risk
          • Prepayment risk
          • Interest rate risk
        • Bonds’ valuation techniques
        • Price and maturity relations
      • Stock market and equity valuations
        • The equity instruments: IPOs, seasoned offerings and private equities
        • Holding period returns for equity securities
        • Equity valuation techniques
          • Discounted cash flow model
          • Multiplier model
        • Accounting for investments: recognition, impairment and hedge accounting ​
          • Type of investment securities
          • Classification under IFRS 9: Fair Value Through Profit or Loss (FVTPL), Fair Value Through Other Comprehensive income (FVTOCI), amortized cost
          • Initial recognition and subsequent measurement
          • Transfer between categories
          • Impairment of financial assets under the new standard
            • Expected credit loss model
            • Initial recognition of expected credit loss
            • Stage 1,2 and 3 evaluation
          • Briefing on hedge accounting under IFRS 9
            • Conditions for hedge accounting
            • Fair value hedge and cash flow hedge
          • Briefing on derivatives markets, hedging and speculation
            • Definition of derivatives: forwards, futures, options and swaps
            • Difference between hedging and speculation
            • General internal hedging strategies
              • Investing in the home currency
              • Creating a natural hedge
              • Currency diversification
              • Mark-ups
              • Counter trades and currency offsets